Monday, June 11, 2007

Hedge Fund Activism

It is a fairly common event now for Hedge Funds to "motivate" management to do the "right thing." I do not pass judgement on those who do this type of investing as they have been very successful at this technique. Here is a SEC filing that details the activities that are going on between a company called Building Materials Corporation (BLG) and Chapman Capital, LLC, a West Coast based hedge fund:

http://www.sec.gov/Archives/edgar/data/1046356/000136541707000032/formsc13d.htm

Skip to the end and the appendix has the actual e-mail correspondence between the two parties.

1 comment:

Mark said...

I found the emails amusing and read most of the funds thesis. found it particularly interesting that one of their segments was deeply undervalued.